Question 1

Both high-performing and low-performing small ventures have problems with

Accepted Answer

A

Question 2

Identify the key dimensions influencing a firm's strategic planning activities.

Accepted Answer

There are five factors that shape the strategic management activities of growing companies. These factors are: demand on strategic manager's time; speed of decision making; problems of internal politics; environmental uncertainty; the entrepreneur's vision.

Question 3

Describe the value of strategic planning as evidenced by research studies.

Accepted Answer

All of the current research indicates that firms that engage in strategic planning are more effective than those that do not. In one study of 357 Texas ventures there was evidence of less failure in the firms that did planning over a two-year period (Sexton and Van Auken, 1985). Another study of 9,000 firms established the lack of planning as a major cause of failure (Dun & Bradstreet, 1987). Finally, the Bracker & Pearson study in 1988 demonstrated that small firms using structured strategic planning outperformed all other firms in the study.

Question 4

Identify the approaches that can be used to implement a strategic plan.

Accepted Answer

The answer of Identify the approaches that can be used...

Question 5

The emphasis of the business plan should never be the final implementation of the venture.

Accepted Answer

The business plan should emphasize not only the planning stages but also the final implementation of the venture, as it guides the execution and management of the business.

Question 6

Which of the following is a pitfall to avoid in planning?

Accepted Answer

Lack of priorities is a common pitfall in planning as it can lead to confusion and inefficiency, making it difficult to focus on the most important tasks.

Question 7

What is one possible way to avoid the pitfall of no market niche (segment)?

Accepted Answer

Clearly specifying which market niche the venture plans to target helps in avoiding the pitfall of having no market niche by ensuring that the business has a defined audience and can tailor its strategies accordingly.

Question 8

The final copy of the business plan should be

Accepted Answer

The answer of The final copy of the business plan...

Question 9

Which of the following ratios are analyzed using a pro forma balance sheet?

Accepted Answer

Inventory turnover is a ratio that can be analyzed using a pro forma balance sheet, as it involves comparing the cost of goods sold (COGS) to the average inventory, both of which are components of the balance sheet.

Question 10

Which of the following is suggested for helping in the oral presentation of a business plan?

Accepted Answer

The answer of Which of the following is suggested for...

Quiz 7: Developing an Effective Business Plan and Strategic Entrepreneurial Growth